This forecast by the International Telecommunications Union for the U.S. service provider market suggests why fixed-line network broadband investments are contentious.
If the ITU forecast is correct, the balance of revenue between mobile and fixed sources will shift dramatically in the direction of mobile services by about 2014.
The issue is how much capital a company ought to invest in a declining business, when it has another growing business.
Few service providers with both wireless and wired network assets will be able to ignore the change. Put simply, the financial return from just about any type of fixed-line investment is going to be sharply limited over the next decade, at the very least. If the ITU forecast is correct, fixed-line revenue is going to keep declining between now and 2015.
Thursday, May 19, 2011
ITU Forecast Shows U.S. Service Provider Growth is All Mobile
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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